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Basic Information

Malta is comprised of a group of islands located in the Mediterranean Sea, south of Sicily, and 288km northeast of Tunisia. An estimated 405,165 people live within just 316 square kilometers of land, making it one of the most densely populated areas within the European Union.

The governing of Malta is based on a republic, with a new president of the republic being elected by voters on a 5 year basis. The entire country of Malta is also divided up into 68 smaller sub-districts, each with separate councils for administration purposes. In 2003 a referendum was held to decide on membership to the European Union, a narrow percentage voted in favour of joining, and it 2004 Malta became a full member of the European Union. In 2008 the euro (EUR) replaced the Maltese lira (MTR) as the countries national currency.

Tourism, financial and information technology related industries play a major role in Malta's economy, with the service sector employing 68% of the total workforce. A further 29% of the workforce, work within the industrial sector, with Malta's main exports being electronics, machinery and pharmaceutical items. Major export partners include Germany, Singapore, France, the UK and the US.

Malta has little of its own natural resources such as hydrocarbons, water and food stuffs (it only produces 20% of its entire food needs) therefore it relies heavily on goods from other countries. Malta imported $3.94 billion worth of goods in 2009, more then a quarter of which was from Italy, with other import partners being the United Kingdom, France and Germany.

While Malta managed to survive the economic crises of 2009 and remain relatively unharmed, it has had several problems which have dented the economy, such as increasingly high water rates (due to its limited water supply) and high electricity rates. The budget deficit rate stands at 4.5% of total GDP, in breech of the European Union's 3% maximum allowed rate. The total GDP figure is $7.7 billion (2009).

The Malta International airport (MLA) is the only airport within Malta, it is located 5km southwest of the capital city of Valetta. It mainly services other European cities, with the busiest routes being to London Gatwick and Heathrow, although Emirates airline have several flights weekly to Dubai. The old terminal has been transformed into a cargo area after a refurbishment, now several airlines transport freight items to European locations.

Partly due to Malta's large import and export requirements, it ranks as the fourth country in the world to have the most number of marine ships engaged in the carrying of cargo - with a total figure of 1,438 (2008). There are three major ports in Malta: Malta Freeport, Marsamxett harbour and the Port of Valetta. The Ċirkewwa Harbour also runs a frequent ferry service to the nearby island of Gozo.
The road system in Malta totals 2,014km. Malta has the 4th largest car ownership in the European Union, which considering the small size of the island can make travelling in central areas difficult due to congestion. Malta has an efficient bus service network, which offers frequent services throughout the country. Buses are a popular method of transportation with locals and tourists alike, carrying an estimated 31 million passengers annually (2008). There is no current railway system in operation in Malta.

Since 1995 Malta has relied solely on oil to fulfil its electricity generation needs, the amount of oil consumption has also risen by 49% since 1990 (CIA world factbook). The water infrastructure in Malta is poor, with frequent shortages and bans imposed in the country. Problems relating to the water and energy infrastructure have resulted in increasingly high rates for these services, having a detrimental effect on established business within the country.

Over 95% of the population are Maltese, British residents make up 2.3%, and the remaining foreign inhabitants come from other Mediterranean counties. The official language of Malta is Maltese and English, Italian is also widely spoken.

Malta has a strong education system, with a total 5.5% of the GDP being invested back into educational facilities. Education in Malta is based on the British model, whereby it is compulsory for children to attend primary school, then secondary school until the age of 16. The University of Malta was founded in 1592, and offers undergraduate and graduate programmes in eleven different faculties. Undergraduate programmes are completely free of to Maltese students as well as citizens of the European Union, currently 9,000 students are enrolled in courses at the college. Literacy rates are lower then many other developed Western cities, with the figure standing at 92.8%.

The tax rates for individuals residing in Malta are based on a progressive pay-scale, ranging from 0%-35%. If an individual earns less then €8,150 per annum then they are exempt from paying taxes. On the other end of the scale, any individual earning over €19,000 must pay 35% taxes. A foreign resident working in the country is only required to pay taxes from monies earned within Malta, if however they stay for longer then 183 days a year they will be classed as a permanent resident and must pay taxes on income earned from abroad as well as in the country. Corporate tax rates are relatively high at 35%, however there is no deduction of tax at source for dividends, interest or royalties. Malta is also implementing new incentives to attract foreign investors to the area. The Maltese Development Company was set up to help give low interest loans to new foreign business. If a new business complies to the Business Promoting Act, it may benefit from special incentives such as a low 5% tax rate for the first 5 years of trading. The standard VAT rate is 18%, with a discounted rate of 5% available for medications and some foodstuffs.

Office rentals are lower then in many other European countries, with major industrial parks offering ready-to-move in office space packages. The minimum wage rate stands at just €634 per month, which is lower then other counties such as France, Germany and the United Kingdom.